The Prime Minister has told Parliament in his official budget reaction that his government’s vision is the same as the vision of the Maltese and Gozitan people.

Prime Minister Robert Abela began his official budget reaction by saying that Malta has certainty and stability – this year’s budget motto – and that Maltese citizens are happy to live under a government that accommodates their needs.

“We aren’t content with what we have achieved today. We are convinced that we are going to do more than the achievements we’ve achieved so far,” he said.

“Our vision is the vision of the people,” he said.

He said that this budget will result in new achievements. 

He praised the government for achieving a lot even though it passed through a difficult time due to the Covid-19 pandemic and the war in Ukraine.

“Don’t let yesterday’s speech put you down,” he said, referring to PN leader Bernard Grech’s budget reaction.

He said that the budget aims to minimise the high cost of living, it aims to help the most vulnerable, and it aims to improve the quality of life with better infrastructure and environment.

Abela said that if the Nationalist Party was in government then they would not have followed the above principles and would have taken the easy way out by allowing bills to increase.

He added that it is a good thing that the people chose the future and not the Nationalist Party.

 

The people’s choice, he said, had led to many things being free for the first time ever: MATSEC exams and public transport being among those, adding that opting for the PN’s “politics of austerity” would have been a big mistake.

Abela said that had the price of gas and electricity gone up, a lot of families would have suffered.  He said that Maltese families were lucky that they are in Malta and that this did not happen.

“Statistics published by Eurostat revealed that Maltese families are paying half what families are paying in Europe,” he said. On average families in the EU are paying 75% more, he said.

Abela retorted to Grech’s Monday speech, saying that the €600 million in subsidies are going to businesses and families

He slated the Opposition for saying that the government’s budget is filled with the same old things.

“Opposition leader, I cannot say that you are more of the same because you are going from bad to worse,” he said. “New faces, same old hands,” he said to applause from his colleagues.

Our decisions come from our beliefs – Abela

When speaking about the challenges faced in March, when it was made to seem like there was no hope, he said that he would never let these negative aspects take over the Labour Party.

When speaking about the poverty, he said that this budget works to reduce the poverty and protect anyone at risk of poverty.

Last year, Abela said, there was criticism that the Budget was one which was driven by the fact that it was the last one before the general election: however, he said, this Budget has been just as successful as the last one.

He pointed out how two years ago there was no allowance for carers for family members with a disability. This Budget increases the grant they receive by €4,000, Abela said.

When talking about mental health he said that “these targeted measures show that the government is sensitive and cares about everyone.”

He praised the Nationalist government for implementing the COLA, and said that instead of simply objecting to anything the PN government had done, they had continued to strengthen it by introducing a second COLA mechanism to target the most vulnerable.

After listening to unions, he said, the PL had made an adjustment for the people to receive the COLA that was proposed in the budget.

He pointed out how taxes will remain the same, as will the tax refund. He said that even though there will not be an election next year, people will still receive a tax refund – a jab at criticism offered when the last tax refund cheque was handed out just a week before the general election.

Guarantees for the future

He said that an increase in €90 on the children’s allowance was just one guarantee for children which the government had provided.

Abela noted that a laptop will be given to all those children in Year 7, and that Scheme 9 had been amended so that those in need receive all the help that they can get.

He pointed out that more money will be given to schools to support children as well.

He said that the government today invests more than double that the PN used to, in response to Grech saying that the PL has reduced the funds available in this department.

When talking about first-time buyers, he said that the PL has always given this importance. There have been 45,000 new families who are homeowners, he said.

He mentioned that the budget showed that the government will support first-time buyers by subsiding their bank loan by €10,000 which will be paid in equal annual installments .

He broke down that €300 million was spent on Covid-19 and €500 million on government subsidies.

He called out the PN for not being able to achieve the same, which is why the people voted for the PL.

When talking about the PN’s pre-budget document, he mentioned how the media called it a mess. He also pointed out that under the PN the debt was 70% when there were fewer challenges. But under the PL, Malta’s debt is under 60%.

‘Malta was strong, it is strong and it will remain strong’

In a message he brought up with the Council of Europe, he said that the burden of the war in Ukraine should not go to the people but that the people should be protected by the government.

“Malta was strong, it is strong and it will remain strong,” he said

He said that he is against wasted funds but in favour of funds being spent properly.

He mentioned how €6.2 billion is being given to the people, and how “the facts speak for themselves.” “This is a budget with the largest investment in people,” he said.

He noted that next year there will be an almost three-time increase in the capital outlay.

When talking about a return to normality in summer, he praised the fact that there was an increase in flights connected Malta to mainland Europe.

When talking about Malta’s greylisting by the Financial Action Task Force, he praised the government for getting out of this in a short amount of time.

Abela said that following all the challenges, he has never seen a budget with such a large investment in society. He said that investors are very happy with this.

Two years ago, he said that the government supported businesses throughout the pandemic so that they will recover after, and the said that this is what happened.

Financial rating agencies have ranked Malta at the highest rank it has ever been, which he said proves how sustainable Malta’s economic model is.

“The deficit will be reduced and it will continue to be reduced,” he said.

He said that one appreciates even more so what is going on in this country when other countries are suffering.

He mentioned the PN electoral, saying that it was filled with mistakes, and that the party had remained the same with the pre-budget document. He accused the PN of not reading its own pre-budget document and called out the party for having such a low standard.

He called out Grech for not even mentioning one proposal which will contribute to the future of Malta, saying that he did not offer anything concrete.

To contradict what Grech said that young people want to leave the country, Abela mentioned a statistic from Eurostat, which showed that from 2014 onwards every year less people have left Malta when compared to the period between 2008 and 2012.

The statistics also showed that in the last few years, more young people who have left Malta have come back. “This is because we are giving them opportunities,” he said.

Turning to the economy, he said that not only is the government supporting start-ups but it is offering new job opportunities and niches, referring to the biomedical industry as one such niche.

He said that the government has implemented all of the sectors it set out to do, mentioning the e-sports sector where one of the largest companies in this industry, ESL, is hosting events in Malta, unlike the PN had done.

The average income with these start-ups is €40,000 a year, he said.

Gozo the ‘economic motor’

When talking about Gozo, he described the sister island as an “economic motor.”

“The airfield project will happen without any negative impact on the environment,” he said, referring to a proposed rural airfield in Xewkija.

He also said that roads have been significantly improved in Gozo.

Next year, there will be a €65 million allocation for Gozo, he said, in the form of a Sustainable Development Fund. He said that this will be invested in the infrastructure and go towards increasing industry in Gozo.

He mentioned that a decision made in 2006 had negative effects on Gozo’s environment, referring to the 2006 local plan changes instituted by the PN administration, and that the government is now supporting those who purchase vacant properties.

Investment in the environment “is our priority,” Abela said, and spoke about the need to have more open spaces. There will also be incentives for cars not to be used in these spaces, he said.

He called out the PN for ruining places in Malta, such as Hondoq ir-Rummien which is subject to an appeal decision on a massive planning application on Thursday.

Government has planted 25,000 trees this year so far

When talking about traffic and the environment, he mentioned the Msida Creek project which he said is a step in the right direction.  NGOs earlier in the day though said that the project had to go back to the drawing board and prioritise alternate modes of transport more.

He said that the government has planted 25,000 trees this year alone, and that plans for St. Anne’s street to be a pedestrianized garden amongst other projects will soon kick off.

Speaking about investment in better air quality, Abela said that the shore to ship power project where a total of 17,000 families will benefit as 90% of current emissions will be cut.

Better working conditions for all

Amongst every sector, there is the worker, he said.

He said that these sectors cannot work without proper working conditions for the workers to motivate them.

“The work conditions of our teachers need to improve,” he said.

He praised educators for the crucial role that they play in society. He also praised the health workers for the good work that they do and the success that they have had

He highlighted the importance of continuously investing in the workers, to continue strengthening the different sectors.

For community policing, he said that this has spread all over the island to increase safety for Maltese citizens.

He said there needs to be a change in mentality in the courts. “The toga does not place you above others,” he said.

 

He concluded by saying that the budget is a step towards a better future which offers certainty and stability.